Lawrence Steckman Successfully Defends Firm Against Rule 10b-5 Securities Fraud Claim

August 2013 – Partner Lawrence Steckman defended an outside auditor firm against securities fraud claims in New York’s Southern District. The auditor was accused of violating Rule 10b-5 and Section 11 in a class suit seeking in excess of $60 million. Judge Daniels dismissed the Complaint under Rule 12, with prejudice, holding that the auditor had no duty to review Chinese SAIC filings of defendant company and that auditor’s stated opinion that company financial statements were prepared in accord with GAAP and that its audit complied with PCAOB standards was not actionable. Judge Daniels rejected plaintiffs’ “red flag” arguments, as well.